3 Signs You Are a Victim of Loan Fraud

Many people fall victim to loan fraud every year in the United States. Loan fraud is any misrepresentation of the loan process and it is illegal. Lenders are supposed to disclose everything during the process and give you accurate information throughout. If they fail to do so, they are committing loan fraud and it is punishable by the law. If you want to make sure that you are not a victim of loan fraud, there are a few signs that you should watch out for. Here are some common signs that you are a victim of loan fraud. 

1. Working With a Questionable Lender

There are many reputable lenders that are willing to help you get the loans that you need. While many of them are reputable and legitimate, there are some loan scams out there in the market. Before you do business with any company that claims to be a legitimate loan company, you need to make sure that you know who you are dealing with. A legitimate company will usually have been in business for a number of years. You will be able to read reviews of them online from other happy customers. Most of the time, you will have at least heard of them. If you are unsure about anything to do with the company, walk away and find another lender. 

2. Someone Asks You to Lie

Lying on your loan application is one form of loan fraud. If your lender asks you to misrepresent anything on your application so that they can approve it, that is a form of loan fraud. For example, let's say that you have good credit and the only thing stopping you from getting approved is your income. If you bumped up your reported income by another $15,000 the lender would be able to approve you for the loan. Your loan officer knows this and mentions it to you. They want to get the commission from the loan and they try to talk you into lying on your loan application. If someone does this to you, you need to report them immediately. This could get you in some serious trouble if you were caught and you do not need to worry about this in the future. Never listen to anyone that suggests you should misrepresent something on your loan application. It is not worth the benefits that you could receive. 

3. Lender Lies About Loan

Another sign of loan fraud that you should watch out for is when a lender lies about their loan product. They might explain the terms of the loan in one way and you read something completely different in the fine print of the loan. If this happens, you need to be very suspicious of them and their lending practices. A legitimate loan company will represent their loan products truthfully without shading the truth at all. Anyone who does otherwise should not be trusted. 

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